After the Bell | September 16, 2021
Corn: December futures lost 4 cents to $5.29 1/2 a bushel following disappointing export sales. USDA’s weekly USDA Export Sales report showed net U.S. corn sales for the week ended Sept. 9 at 246,600 metric tons (MT), with Mexico the lead buyer at 154,300 MT. The total fell well below trade expectations ranging from 500,000 MT to 1 million metric tons (MMT) and raised fresh concerns about the domestic industry’s recovery from Hurricane Ida damage. Traders may also be anticipating increasing seasonal pressure on cash and futures markets, with harvest is now underway in southern areas and marching northward. The soybean market’s inability to sustain early gains, along with slipping prices in the energy sector, probably encouraged selling in corn as well.
Soybeans: November soybeans rose 1 1/2 cents to $12.96 a bushel. December soybean meal rose $4.50 to $344.10 per ton. December soyoil fell 153 points to 56.84 cents per pound. Moderate selling pressure in corn futures market limited buying interest in soybean futures. Soybean bulls were disappointed better-than-expected weekly USDA export sales data failed to provide much support. Net weekly U.S. soybean sales totaled 1.26 MMT, primarily for China (945,200 MT) and “unknown” destinations (163,000 MT). Expectations ranged from 600,000 MT to 1.4 MMT. Also today, USDA reported U.S. soybean sales of 132,000 metric tons (MT) for delivery to China during the 2021-22 marketing year. A stronger U.S. dollar index today also tempered buyer interest in the soybean complex.
Wheat: December SRW futures rose 3/4 cent to $7.13 a bushel, the highest closing price since $7.19 3/4 on Sept. 7. December HRW futures rose 4 1/2 cents to $7.20 1/2. December spring wheat futures rose 1 3/4 cents to $9.06 1/2. Wheat futures ended mixed after ongoing concern over tightening global supplies pushed prices earlier in the day to the highest levels in over a week. USDA’s weekly export sales report came out at the high end of expectations, with net U.S. sales for the week ended Sept. 9 totaling 617,100 MT, a marketing-year high and up 59% from the previous week. Total U.S. wheat exports so far this marketing year still lag last year’s levels at this point by about 17%. Futures climbed overnight following reports Strategie Grains lowered its European Union soft wheat crop estimate for 2021 by 1.8% to 129.1 MMT and cut its EU soft wheat export forecast by 5.2% to 31.0 MMT.
Cotton: December cotton futures fell 86 points to 92.51 cents a pound, down 1.1% from 93.50 at the end of last week and the lowest closing price since 92.30 on Sept. 1. Cotton futures settled at the lowest levels in over two weeks as strength in the U.S. dollar overshadowed strong export numbers. USDA reported net U.S. cotton sales for the week ending Sept. 9 totaling 284,800 running bales (RB), down 37% from the previous week but up 9% from the prior four-week average. China was the lead buyer at 183,900 RB. Exports of 237,500 RB were up 53% from the previous week and up 27% from the four-week average. The U.S. dollar index rose to the highest level in nearly three weeks, muting bullish impact of USDA’s numbers.
Cattle: October live cattle fell 57.5 cents to $123.60 per hundredweight, while October feeder cattle rose 60 cents to $157.10. After cattle futures posted strong corrective gains Tuesday, upside momentum subsided today amid a steady to slightly weaker cash market, compared with last week. USDA reported weekly U.S. beef export sales of 15,300 MT, up 23% from the previous week and up 24% from the four-week average. But weekly shipments were down 11% compared with both week-ago and the four-week average. Wholesale beef prices showed few signs of bottoming. Choice boxed beef dropped another $1.82 today, to $318.00, as packers reduced prices to move product. Movement totaled 141 loads. The boxed beef market likely needs to bottom before buyers actively return to futures.
Hogs: October lean hogs closed up $3.20 at $85.475 per hundredweight. Strong gains the past two sessions suggest the market may be establishing a near-term bottom after sinking to six-month lows earlier this week. Wholesale pork prices extended a recent upturn. Pork cutout values rose 27 cents today to $105.97, led by gains of about $10 in loins and bellies. Movement totaled 259 loads. The national direct average cash hog price was down $1.91 at $83.72 today. The latest CME lean hog index is down $1.42 to $95.35, the lowest since March but still about $10 higher than nearby futures. Hog slaughter so far this week totaled an estimated 1.88 million head, compared to 1.43 million head for the same period last week and 1.92 million head for the corresponding period in 2020, USDA reported. Also today, USDA reported net weekly U.S. pork sales totaling 25,300 MT, down 25% from the previous week and down 9% from the prior four-week average.
